An Annual Report must be filed by all business entities …

1 Form 1 Instruction ( ) Page 1 of 8 An Annual Report must be filed by all business entities formed, qualified or registered to do business in the State of Maryland, as of January 1st. WHO MUST FILE THE Annual Report The Annual Report is a required filing for all business entities , regardless of whether the business owns property, generates income or has conducted business activity in Maryland during the preceding year. This includes the following entity types, both Domestic and Foreign: Stock, Tax Exempt Non-Stock, Non-Stock, Religious, Close, Benefit and Professional Corporations, Limited Liability Companies & Benefit LLCs, Limited Liability Partnerships, Limited Partnerships & Limited Liability Limited Partnerships, Statutory ( business Trusts), Real Estate Investment Trusts Failure to file the Annual Report may result in the forfeiture of the entity s right to conduct business in the State of Maryland.

2 REMINDER: To ensure proper filing, include your SDAT Department ID on your Report , where requested, and on all communications with SDAT. Annual Reports filed without a Department ID will be not be accepted, causing delays and possible late fees. WHEN TO FILE The deadline to file for 2018 is April 16th. (April 15th falls on a Sunday this year.) Annual Reports that are postmarked by COB on April 16th will be considered timely. You may request a 60 day extension of the filing deadline, at no cost, by visiting Extension requests must be made before April 16th. WHERE TO FILE We have expanded the types of entities that can file online this year through Maryland business Express. Please visit the website to learn more: ( Filings may be submitted in person by visiting our Public Services Center at our Headquarters in Baltimore. The address is: State of Maryland - State Center 301 W. Preston Street, Room 801 Baltimore, Maryland 21201 Filings may also be submitted by mail. Be sure to sign the Annual Report and include a check or money order for the full amount of any required filing fee.)

3 Send the completed package to: Maryland Dept. of Assessments and Taxation Annual Report PO Box 17052 Baltimore, Maryland 21297-1052 All other correspondence, including Amended Annual Reports, should be sent to: Maryland Dept. of Assessments and Taxation Charter/Legal Division 301 W. Preston Street, Room 808 Baltimore, Maryland 21201-2395 FILING FEES The filing fee for most business entities is $300. The fee must accompany the Annual Report in order for the Report to be accepted by SDAT. Failure to include the filing fee will result in SDAT not accepting the Report which may cause delays and/or late filing fees. Form 1 Instruction ( ) Page 2 of 8 FILING FEES (con t) Types of business ID # Prefix Filing Fee Domestic Stock Corporation D $300 Foreign Stock Corporation F $300 Domestic Non-Stock Corporation D $0 Foreign Non-Stock Corporation F $0 Foreign Insurance Corporation F $300 Foreign Interstate Corporation F $0 Domestic Limited Liability Company W $300 Foreign Limited Liability Company Z $300 Domestic Limited Partnership M $300 Foreign Limited Partnership P $300 Domestic Limited Liability Partnership A $300 Foreign Limited Liability Partnership E $300 Domestic Statutory Trust A $300 Foreign Statutory Trust S $300 Real Estate Investment Trust D $300 SDAT Certified Family Farm A,D, $100 Amended Returns ALL $0 The filing fee must be paid regardless of whether the business owns property in Maryland, generates any income in Maryland or conducts any business in Maryland.

4 Checks and money orders should be made payable to SDAT and include the business SDAT Department ID. Corporations not authorized to issue capital stock are not required to pay a filing fee. The filing fee for SDAT Certified Family Farms is $100 beginning the year following its election to become a Family Farm. LATE FILING PENALTIES If the business files their Annual Report after the deadline, it may be subject to late filing penalties. The penalties cannot be prepaid and can only be calculated after the Personal Property Tax Return is filed . If the business is assessed any late filing penalties, it will be notified by mail after the assessment is complete. The following minimum and maximum initial (base) penalty amounts apply: Days Late Minimum Maximum 01-15 $30 $500 16-30 $40 $500 31 or more $50 $500 A business which files the Form 1 after the April 16th due date (June 15 for those with approved extensions).will receive an initial penalty of 1/10 of one percent of the county assessment, or the base penalty, whichever is greater.

5 Interest will accrue at the rate of 2% of the initial penalty amount for each thirty (30) day period, or part thereof, that the Form 1 is late. WHAT ADDRESS TO USE For the purpose of the Annual Report and Personal Property Tax Return, use the business mailing address in Section I of the form. The business mailing address may also be changed when submitting the Annual Report . Insert the new mailing address in the address fields in Section I, and check the box to indicate that this is a change of mailing address. A business mailing address may be any US Post Office recognized address, including non-Maryland addresses, addresses in foreign countries and post office boxes. PERIOD COVERED BY Annual Report AND PERSONAL PROPERTY TAX RETURN All reports cover the calendar year regardless of the business fiscal year. All information required to be reported shall be as of January 1 of the filing year, except for items which specifically ask for information from prior years. INFORMATION AND ASSISTANCE PERSONAL PROPERTY UNIT Internet Site.

6 Form preparation and assessment procedures: Corporations, LLCs, LLPs, business Trusts, REITs .. (410) 767-1170 Extensions .. E-mail Address .. Toll Free within Maryland .. (888)-246-5941 MRS .. 1-800-735-2258 TT/VOICE (Maryland Relay Service for speech And hearing impairment) CHARTER UNIT Internet Site .. Charter Information .. (410) 767-1330 Incorporated, Qualifications, Revivals & Dissolutions .. (410) 767-1350 E-mail Address .. Toll Free within Maryland .. (888)-246-5941 MRS .. 1-800-735-2258 TT/VOICE (Maryland Relay Service for speech And hearing impairment) Form 1 Instruction ( ) Page 3 of 8 COMPLETING THE Annual Report To start your Annual Report (Form 1), check the appropriate box for the business type at the top of the form and note the associated filing fee for your business type. SECTION I All business entities must complete this section. If any item is inapplicable, leave that item blank or insert N/A.

7 Insert the full, legal name of the business entity, including any tails. (Required) Insert the SDAT Department ID. If you do not know your Department ID, you can look it up on Maryland business Express: ( ) (Required) Insert the entity s FEIN (federal tax identification number obtained from the IRS). Insert the name of the State or jurisdiction where the business was formed. Insert the business entity s Federal Principal business Code (obtained from the IRS.) (Required) Insert the trading-as-name (DBA) that the business uses, if any. Insert the complete mailing address for the business . If this is a new mailing address, check the box to the left. You cannot change the Principal Office or Resident Agent address using this method. Please consult website for instructions on how to do that. Insert an email address in order to receive important reminders from SDAT. SECTION II Only complete this section if the business entity is a corporation (domestic or foreign). If the business entity is not a corporation, skip this section and proceed to Section III.

8 A. Provide the names and mailing addresses of all corporate officers. All domestic corporations must have a President, Secretary and Treasurer. Attach additional pages if necessary. B. Provide the names of all corporate directors. All Maryland corporations (except close corporations) must have at least one director. Religious corporations should list the names of all Trustees here. Attach additional pages if necessary. SECTION III All business entities must complete this section. If the answer to both questions is No , only the Annual Report must be filed with SDAT. If the answer to either question is Yes, the business must also complete the Personal Property Tax Return. A. Check Yes if the business entity owns, leases or uses any property other than real estate, intellectual property or vehicles registered with the MVA, and that property is located in the State of Maryland. Here, the term Personal Property is used as a term of art and specifically includes property owned by the business , leased by the business or used by business , even if that property is owned by another business or individual.

9 Personal property includes computers, phones, cell phones, furniture, draperies, inventory, equipment, tools, machines, books, artwork, supplies and fixtures. Only check No if the company does not use, lease or own any property that is located in the State of Maryland. B. Check Yes if the business has or is required to have a Trader s License (sometimes called a business license) issued by the Circuit Court for the county or counties in which the business has locations. SECTION IV This is the signature part of the form and all business entities must complete this section. If you are mailing the form, original signatures are required. Photocopies, confirmed signatures, faxes, scans or any type of signature other than an original, ink signature are not acceptable. This form is signed under oath and subject to the penalties of perjury. Please review it carefully for accuracy before you sign and submit it! A. Only complete this item if you are preparing the return for, or on behalf of, the business entity, and are not a constituent of the business .

10 Generally, this item is for accountants, tax preparers and attorneys. B. This item must be completed by all business entities . If this item is not completed, the Annual Report will not be accepted. Print the name of person signing on behalf of the business . The date should be the date the form is signed. Include a phone number and email address so that we can contact you to resolve any potential discrepancies or errors quickly. Form 1 Instruction ( ) Page 4 of 8 ABOUT THE PERSONAL PROPERTY TAX RETURN WHAT MUST BE REPORTED Generally, all tangible personal property owned, leased, consigned or used by the business , and located within the State of Maryland on January 1, 2018, must be reported. Property not in use must still be reported. All fully depreciated and expensed personal property must also be reported. Personal property includes, but is not limited to, office and plant furniture, machinery, equipment, tools, furnishings, trade fixtures, inventory, and all other property not considered part of the real estate.